Tote-Based Warehousing System and Method

ABSTRACT

A warehousing system includes a container for storing at least one item, a first electronic (e.g,. radio frequency identification (RFID)) module associated with the first container, and a controller which wirelessly communicates with first electronic module, for directing a transfer of said at least one item to and/or from said first container. The inventive system may include, for example, a hybrid retail/warehouse system which includes a facility having a shelving area, and a picking area adjacent to the shelving area, and a layout so as to minimize a picking area and a walking distance between a picking area and a shelving area.

This application is a divisional of Ser. No. 11/622,662 filed on Jan.12, 2007, which is a continuation of U.S. application Ser. No.10/892,500 filed on Jul. 16, 2004, which is a continuation in part ofU.S. application Ser. No. 10/474,353 filed on Apr. 9, 2002, which claimspriority from U.S. application No. 60/282,150 filed on Apr. 9, 2001 andfrom U.S. application No. 60/359,350 filed on Feb. 26, 2002, each ofwhich is incorporated herein by reference for all purposes.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present invention generally relates to a warehousing system andmethod, and more particularly, a warehousing system and method which maybe used in a hybrid retail/warehouse facility.

2. Description of the Related Art

Many inventory-based businesses rely exclusively or heavily on theInternet. However, such businesses (e.g., dotcoms) have often failed,primarily because there are simply too few customers to carry costs.That is, the costs of fulfillment and operating overhead could simplynot be covered with the actual customer base. However, the Internetcustomer base continues to grow by 25% each year, and so the potentialfor future profits appears evident. For instance, Amazon.com recentlyhad its first profitable quarter ever.

A major barrier to growth for any inventory-based business is managingthe physical warehouse, physical inventory, and fulfillment fromwarehouse to customer. Many companies sell “solutions” that includepick-to-light (PTL) or Dynamic Picking Systems, batch picking with tilttray sorting, automated crane systems. A major problem with suchconventional systems is that volume and throughput commitments must beestablished before capital and systems commitments are made. If thebusiness plan is wrong and a warehouse faces unexpected expansion, itbecomes quite expensive. If the business plan is wrong and the warehousefaces below target throughput, it is a financial disaster. Finally, ifthroughput is predictable, existing legacy systems are too expensive tochange.

Any new initiatives especially retail based ventures must take a longhard look at fundamental economics, value chains and operating costs.For instance, one of the major economic inefficiencies in dotcombusinesses is the Internet's dependency upon expensive “old economy”fulfillment channels. In addition, the dotcoms assume that any Internetretail business (i.e., “the e-tailer”) was just like mail order.

After the dotcom collapse none of the fulfillment companies filed forChapter 11. All claimed 10% to 20% annual growth in new business as aresult of the Internet and appear to have had positive Internet cashflows from day one. However the high costs and inefficiencies of thesefulfillment channels cause conventional systems to be expensive andinefficient and were directly responsible for the demise of manydotcoms.

More specifically, three basic types of fulfillment systems have beenused for retail Internet-based businesses: Central High Volume AutomatedWarehouse (National Fulfillment Channel), Regional Medium VolumeWarehouse (Regional Fulfillment Channel), and Regional Low VolumeStore/Warehouse (Regional Fulfillment Channel)

Many examples exist for the first type of system or mail-order model,some successful and some not so successful. The best known success ofthe second type of conventional system is Corporate Express, withrevenues of over $4 billion. In this second type of system, inventivesystem 100 (e.g., the inventive fulfillment chain) can cut fulfillmentcosts by as much as 50%.

The third type of system (e.g., Store/Warehouse approach) has worked ona small scale and certainly minimizes capital required to launch anyInternet business. However, merely using conventional retail storesystems does not have the ability to scale. In other words, merelyutilizing a different fulfillment channel without major modifications tothe store does not make economic sense for many reasons.

The major advantage of the third type of system (e.g., the retailStore/Warehouse approach) is that the sunk costs associated withinventory and inventory management can be shared by both the Internetand direct in-store retail sales. However, this type of system has twomajor shortcomings that make it not scalable.

First, the “value chain penalty”. That is the product has come frommanufacture to a pallet based central warehouse, broken down into“eaches” (e.g., single items), shipped to the store and prepared forshelf-based in-store sales. It has been handled maybe four or fivetimes. The sunk cost for the product on the in-store shelf may be asmuch as 12% higher than if it were in an optimized “two touch” warehouseenvironment.

Second, inefficiencies created for the Internet business by an in-storeenvironment where picking eaches and management of inventory iscomplicated and costly. For instance, many warehouse systems involveplacing products on shelves and picking the products based on lights anddisplays attached to the shelf (e.g., a so-called “Pick and Put toLight” (PTL) system). These systems typically require physical addressesfor each item and also require that a “picker” travel to the warehouseshelf to get an item.

Therefore, such conventional systems are inefficient and time consuming.For example, lead to pick rates of 100 or less per hour per employee arenot uncommon. Indeed, the inventors believe the warehouse pickingpenalty for the Internet business might be as much as 4% on sales.

Thus, in the end the products will either cost more for the Internetcustomer, in addition to the actual fulfillment costs, or the productswill cost more for in-store customer.

In addition, many warehousing systems, product distribution systems, andmethods for storing items (e.g., medical devices such as heart valves,stents, endoscopes, sutures, shunts, etc.) are currently veryinefficient. For example, many such items have an expiry date (e.g., ashelf life) after which the item is no longer usable and is thus,discarded. Currently, many such items are not used by their expiry dateand are, therefore, discarded due to an inability to efficiently andeffectively track inventory, store or warehouse these items.

SUMMARY OF THE INVENTION

In view of the foregoing and other problems, drawbacks, anddisadvantages of the conventional systems and methods, an object of thepresent invention is to provide a cost and space efficient warehousingsystem and method which optimizes each employee's time and leads tohighly efficient putting away” (e.g., re-shelving) of products andhighly efficient picking of products, and which may be used in a hybridretail/warehouse facility.

The inventive warehousing system includes a container (e.g., tote,package, packet, wrapper, envelope, pouch, crate, pallet, bin, cylinder,box, carton, bag, can, etc.) for storing at least one item (e.g., anitem of merchandise), an electronic (e.g., radio frequencyidentification (RFID)) module associated with the container, and acontroller which wirelessly communicates with the module, for directinga transfer of the item(s) to and from the container.

The inventive warehousing system may also include a second container forreceiving the item(s) from the first container. In this case thecontroller may also direct a transfer of the item(s) from the firstcontainer to the second container. In addition, the second container maybe associated with a second electronic (e.g., RFID) module whichwirelessly communicates with the controller, for facilitating a transferof the item(s) from the first container to the second container.

More specifically, the electronic module may include a light emittingdevice which is activated to indicate that the item(s) should betransferred to and from the first container. The module may also includea display device for indicating a content of the container (e.g., firstcontainer).

In another aspect, the present invention includes a hybridretail/warehouse system which includes a retail/warehouse facilityincluding a shelving area, and a picking area adjacent to said shelvingarea, and having a layout so as to minimize a picking area and a walkingdistance between a picking area and a shelving area. The system alsoincludes a container associated with the retail/warehouse facility forstoring at least one item (e.g., item of merchandise) an electronic(e.g., RFID) module associated with the container, and a controllerwhich wirelessly communicates with the module, for directing a transferof the item(s) to and from the container.

Further, the retail/warehouse facility may store item which ispersonally selected by in-store customers and remotely selected byout-of-store (e.g., Internet) customers.

In another aspect, a warehousing method according to the presentinvention includes storing at least one item in a container, andremotely directing a transfer of the item(s) to and from the container,using a electronic (e.g., Radio Frequency Identification Device (RFID)module) which is associated with the container. The inventive method mayalso include remotely assigning a bag (e.g., second container) toreceive the item(s) from the container.

In another aspect, a hybrid retail/warehouse method according to thepresent invention includes storing at least one item in a containerwhich is associated with a retail/warehouse facility, the facilityincluding a shelving area, and a picking area adjacent to said shelvingarea, and having a layout so as to minimize a picking area and a walkingdistance between a picking area and a shelving area. The method alsoincludes remotely directing a transfer of the item(s) to and from thecontainer, using an electronic (e.g., RFID) module which is associatedwith the container. Further, the item may be personally selected byin-store customers and/or remotely selected by out-of-store customers.

The present invention may also include a signal-bearing media tangiblyembodying a program of machine-readable instructions executable by adigital data processor to perform the inventive warehousing method(e.g., hybrid retail/warehousing method).

Further, in the present invention, the container may include a box,pallet, plastic package, or bag, etc. Further, the container may store(e.g., house) a single item.

In addition, the controller can wirelessly communicate with the firstelectronic module via a low frequency signal (e.g., radio frequencysignal).

In another aspect, the present invention includes a pallet for storingan item, the pallet includes a body which contains the item, and anelectronic identification module attached to the body.

In another aspect, the present invention includes a package for storingan item. The package includes a body which contains the item, and anelectronic identification module attached to the body.

Further, in the present invention the electronic module (e.g., the firstelectronic module) may include an antenna for facilitating thecommunication with the controller. The antenna may be small or largerelative to the size of the container. Specifically, the antenna may belarge and may be formed on at least one side of the container.

Further, the electronic module (e.g., first electronic module) may beintegrally formed with the container (e.g., first container). That is,the entire body of the container may be available for including featuresof the electronic module. For example, if the container is a plasticpackage having 6 sides (e.g., a tetrahedron-shaped package) the antennamay be integrally formed (e.g., embedded in) on one or more of the sixsides of the package.

In another aspect, the present invention includes a container forcontaining an item. The container includes a body which contains theitem, and an electronic module integrally formed with (e.g., embeddedin) the body. For example, as noted above, the body may include anantenna coupled to the electronic module for facilitating wirelesscommunication with the electronic module. For example, the body mayinclude a plurality of sides, the antenna being integrally formed withat least one of the plurality of sides. For example, the antenna may beintegrally formed with all of the plurality of sides.

In another aspect, the present invention includes a package forcontaining an item. The package includes a body which contains the item,and an electronic module integrally formed with the body.

In another aspect, the present invention includes a pallet forcontaining an item. The pallet includes a body which contains the item,and an electronic module integrally formed with the body.

With its unique and novel features, the present invention optimizes eachemployee's time and leads to highly efficient put away of products andhighly efficient picking of products. The invention, therefore, offersaffordable, state-of-the-art technology for managing and improvingretail and warehouse operations. The inventive system and method mayalso be conveniently offered as an independent or integrated solution tosupply chain needs.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing and other purposes, aspects and advantages will be betterunderstood from the following detailed description of a preferredembodiment of the invention with reference to the drawings, in which:

FIG. 1 is a schematic drawing illustrating an inventive warehousingsystem 100;

FIG. 2A-2B illustrate a container that may be used in the inventivesystem 100 according to the present invention;

FIG. 2C-2D illustrate examples of how containers may be arranged onshelves according to the present invention;

FIG. 3A provides a detailed illustration of a container which may beused in the inventive system 100;

FIG. 3B illustrates an electronic module which may be associated with acontainer in the inventive system 100;

FIG. 4A provides a detailed illustration of a smart bag (e.g.,container) which may be used in the inventive system 100;

FIG. 4B illustrates an electronic module which may be associated with asmart bag in the inventive system 100;

FIG. 5A-5B are schematic drawings illustrating a layout of an inventivewarehousing system 100 according to the present invention;

FIG. 6 illustrates an inventive hybrid retail/warehouse system 100according to the present invention;

FIG. 7A illustrates a conventional warehouse system, and FIG. 7Billustrates a comparably-sized warehouse utilizing the inventive hybridretail/warehouse system 600;

FIG. 7C illustrates a conventional warehouse system, and FIG. 7Dillustrates a comparably-sized warehouse utilizing the inventive hybridretail/warehouse system 600;

FIG. 8 is a flow chart illustrating an inventive warehousing method 800according to the present invention;

FIG. 9 illustrates an inventive hybrid retail/warehouse method 900according to the present invention;

FIG. 10 illustrates a typical hardware configuration which may be usedfor implementing the system and method according to the presentinvention;

FIG. 11 illustrates an example of a signal-bearing media which may beused to implement the system and method according to the presentinvention;

FIG. 12 illustrates the details of an electronic module which may beassociated with a container in the inventive system 100; and

FIG. 13 illustrates another aspect of the present invention whichincludes an item 1305 to be warehoused, and a system 1300 forwarehousing the item 1305.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS OF THE INVENTION

Referring now to the drawings, and more particularly to FIGS. 1-13,there are shown preferred embodiments of the system and method accordingto the present invention.

As shown in FIG. 1, an inventive warehousing system 100 includes acontainer (e.g., tote, package, packet, wrapper, envelope, pouch, crate,pallet, bin, cylinder, box, carton, bag, can, etc.) 110 for storing atleast one item of merchandise, an electronic (e.g., first radiofrequency identification (RFID)) module 120 which is associated with thefirst container, and a controller 130 which wirelessly communicates withthe module, for directing a transfer of the item(s) to and from thefirst container.

The inventive warehousing system 100 is especially useful for storing anitem (e.g., one or more items) in a container. The system 100 may beespecially efficient for warehousing (e.g., storing) items having anexpiry date.

For example, in the inventive system, a medical device (e.g., a singlemedical device) such as a heart valve, stent or shunt may be stored in apackage (e.g., container).

As described below, the inventive system 100 optimizes each employee'stime and leads to highly efficient “put away” (e.g., shelving) of itemsand highly efficient “picking” of items. The inventive system 100 isbased in part on a wireless container system that may use displaymodules and short range low frequency RF transmitted through loopantennas similar to those used for grocery store pricing modules.

In addition, as shown in FIGS. 2A-2B, the container 110 may include atote for easily transferring items to and from the container.

The container 110 used in the inventive system 100 may be formed ofvarying dimensions and may be used to store several items. For example,the container 110 may be small enough to hold bolts and spices, or largeenough to hold 50 lb bags of dog food. In fact, for very large items thecontainer 110 may resemble a pallet in a pallet-based system.

For instance, the container 110 may have suitable dimensions (e.g.,approximately 18″×18″ by 24″ in an exemplary non-limiting embodiment)and may be made from conventional materials (e.g., plastic). Thecontainer 110 may be smaller or larger, and a warehouse may use aplurality of containers 110 having a variety of sizes. In addition, asshown in FIGS. 2C-2D, the container 110 may be easily stored on storeshelves to provide for a very neat and organized presentation of theitems.

In addition, as shown in FIG. 3A, associated with each container is anelectronic module 120 (e.g., radio frequency identification module(RFID)). For example, the electronic module 120 may be affixed (e.g.,attached) to the container 110. More specifically, the module 120 may bea wireless battery operated module capable of two-way communication.

As shown in FIG. 3B, each module 120 may include a memory device 121(e.g., semiconductor memory; random access memory (RAM) for storing aunique identification (ID) number, two light emitting devices 122 (e.g.,light emitting diodes (LEDs)) which may have different colors (e.g., redand green), a display device 123 (e.g., liquid crystal display (LCD))which may include a five-digit display, and at least one device 124(e.g., button) for activating/deactivating a feature of the module 110(e.g., the LED, display device, etc.).

Of course, many variations of the module 120 configuration are possible.The module 120 may use a low power complementary metal oxidesemiconductor (CMOS) circuitry and, with a standard lithium battery,will operate for a period of many years. The memory device 121 may alsostore button pushes or other parameters associated with the status ofthe container (e.g., weight, temperature, etc.). The memory device 121may also store identification numbers (e.g., UPC) corresponding to itemswhich are contained in the container 110 or which are to be transferredto or from the container 110.

The inventive warehousing system 100 also includes a controller 130which wirelessly communicates with the module 120. The controller 130directs a transfer of the item(s) to and from the container 110.

For example, the controller 130 may include a processor (e.g.,microprocessor), memory device and two way radio device (e.g.,transmitter/receiver). For instance, the controller 130 may include acomputer system which is capable of directing a radiotransmitting/receiving function. For instance, the controller 130 maywirelessly communicate with the module 120 using low frequency (e.g.,300 khz) two-way radio frequencies.

The inventive warehousing system 100 may also include an antenna (e.g.,antennas) (not shown) to facilitate communication between the controller130 and the module 120. The antenna may include one or more antennaloops (e.g., wire loops) and communication may be limited to the areawithin a loop. These antenna loops can be placed in the floor, behind ashelf or in the ceiling.

Thus, when a given loop is activated, it can poll for a specific module120 and if the module 120 is present, it can be made to respond to thepoll. In other words the controller 110 (e.g., a software systemoperated by the controller 130) can direct a search of the entirewarehouse, loop by loop polling for a specific module 110, and locatethe presence or absence of a module 120. When the software systemestablishes communication, the inventive warehousing system 100 cancause the module's display device 123 to display a particular number,read whether a particular button 124 has been pushed or not, turn an LED122 (e.g., red, green, etc.) on or off, read back the identificationnumber of the module 120, read the contents of the memory device 121,etc.

As shown in FIG. 4A, the inventive warehousing system 100 may alsoinclude a smart bag 310 for receiving items from the container 110.Generally, the features described above for the container 110 can alsobe provided by the smart bag 310. For example, the smart bag 310 may bemade of conventional materials, such as plastic or canvas.

Further, as shown in FIG. 4B, the smart bag 310 may also be associatedwith an electronic module 320 similar to the module 110 discussed above.For instance, the module 320 may include a memory device 321 (e.g.,semiconductor memory; random access memory (RAM) for storing a uniqueidentification (ID) number, two light emitting devices 322 (e.g., lightemitting diodes (LEDs)) which may have different colors (e.g., red andgreen), a display device 323 (e.g., liquid crystal display (LCD)) whichmay include a five-digit display, and at least one device 324 (e.g.,button) for activating/deactivating a feature of the module 320 (e.g.,the LED, display device, etc.).

Further, the module 320 may be affixed to the smart bag 310. Forinstance, the smart bag 300 may include a pocket 330 on the front of thebag 310 for containing the module 320. Further, the smart bag 310 mayalso contain an optional second bag (not shown) that can be used to holdproducts for delivery.

The inventive warehousing system 100 provides a fast and efficient toolfor picking and putting away items and may be used in virtually anysetting (e.g., retail, warehouse, hybrid retail/warehouse, etc.). Forinstance, FIGS. 5A and 5B illustrate examples of how the inventivewarehousing system 100 may be implemented according to the presentinvention.

As shown in FIG. 5A, items may arrive at the facility (e.g., awarehouse) on pallets. As soon as the items are identified (from barcodes or the invoice), it may be moved to a “pallet to container putarea” 410 (e.g., staging area). The number of containers 110 required tohold all of the product from the pallet may be calculated by thecontroller 130 (e.g., the system software), and the required number ofcontainers 110 may be transferred into the put area 410 automatically.

A database (e.g., controller database) links the unique identificationnumber of each container 110 with the item and the number of items thatshould be placed in the container 110. The pallet may be manuallyunpacked item by item and placed in the containers 110. Each container110 may be weighed as a cross-check that the number of items arecorrectly packed into the container 110.

Referring again to FIG. 5A, the packed containers 100 may be moved intothe shelf storage area 420 using, for example, a conveyor or truck. Eachcontainer 110 may be placed on the shelf in whatever order and in anyavailable place the worker might find empty. For example, the containers100 may be placed randomly on shelves. Further, the shelves may containmany thousands of containers 100 on shelves.

The controller 130 may communicate with a module 120 on a particularcontainer 110 to indicate that an item contained in that particularcontainer 110 is to be transferred. For instance, the controller 130 maycause the module 120 to activate an LED 122 which can be seen byoperator to indicate that an item is to be transferred from thatparticular container 110. (It should be noted that the module 120 mayinclude an audible signal (e.g., bell) instead of the LED 122 as anindicating device).

The container 110 indicated by the controller 130 may be transferred(e.g., by an operator or automatically) from the shelf storage area 420to a container to bag pick area 430. Here, the item may be transferredfrom the container 110, for example, for delivery to a purchaser. Forexample, the item may be transferred from the container 110 to a smartbag 310. The smart bag 310 containing the item may be transferred fromthe container to bag pick area 430 to a bag to truck put area 440 toawait transfer out of the facility.

Specifically, FIG. 5B provides a detailed illustration of a container tobag pick area 430. As shown in FIG. 4B, the picking area 430 may includea conveyor lane 436 and a picking lane 437.

When an operator (e.g., a “shelf picker”) sees a light flashing on acontainer 110 in the shelf storage area 420, he may remove the container110 from the shelf and place it in a conveyor lane 436 (e.g., conveyorbelt) that takes it to a picking area 430. As the container 110 moves tothe picking area 430, the red LED is turned off. The container 110arrives at the picking area 430 and goes past several picking regions431 until it comes to the region that has a bag 310 assigned to theorder.

When that particular container 110 reaches that region 431, thecontroller 130 (e.g., software) causes the red light on the module 120on that particular container 110 to activate again. The “packing picker”sees the light flashing an removes the item from the container 110.

The operator may scan the item removed from the container 110 using ascanner 435 provided in the picking area 430. The controller 130 (e.g.,software system) detects that the correct item has been scanned andturns off the container's LED.

The operator may transfer the item to the picking lane 437 where smartbags 310 may be assembled. The controller 130 may (e.g., simultaneouslywith deactivating the container LED) activate an LED on a smart bag 310in the picking lane 437 that is supposed to receive the item. Thepacking picker may place the item in the bag 310 that is flashing.

The picking area 430 may also contain a weight detection device (notshown) which allows the smart bag 310 to be weighed so as to detect achange in the weight of the smart bag 310 when an item is placed in thesmart bag 310. For instance, when a predetermined weight change isdetected, the LED on that particular smart bag 310 may be deactivated(e.g., by the weighing device or by the controller 130 whichcommunicates with the weighing device).

After the item has been removed from the container 110, the container110 may continue on the conveyor belt and eventually return to the shelfstorage area 420. As the container 110 moves towards the shelf storagearea 420 the controller 130 may activate an LED on the container module120 (e.g., the green LED) to indicate that the container 110 should beplaced back on the shelf. When the shelf picker may see the greenflashing light on the container 110 and remove the container 110 fromthe conveyor and place it back on the shelf (e.g., in a random order).

Thus, for example, the shelf picker may simply pick red light containersand place them on the conveyor towards the picking area, and greenflashing containers and put them back on the shelves. Therefore, thepacking pickers may, for example, work within their region in thepacking area 430 and simply take items from a red flashing container inthe conveyor lane 436, scan it and place it in the bag 310 that has aflashing light in the picking lane 437. A container 110, the items inwhich have not been picked, may simply stay on the conveyor belt toreturn to the picking regions 431. It may also be possible to keep highvolume items (e.g., items that are frequently picked) on a specialconveyor behind the pick lane 437 so that they may be easily moved tothe pick lane.

Hybrid Retail/Warehouse Facility

The inventive warehousing system and method may be efficiently andeffectively incorporated, for example, in a hybrid retail/warehousesystem.

As shown in FIG. 6, an inventive hybrid retail/warehouse system 600includes a retail/warehouse facility 605 for storing items (e.g., itemsof merchandise). The retail/warehouse facility 605 may store items whichmay be either personally selected by in-store customers and/or remotelyselected by out-of-store customers. For example, the retail/warehousefacility 605 may be designed to handle both retail customers who areshopping in person and personally taking items from the shelves forpurchasing. However, the facility 605 may also be designed to handlecustomers that are remotely purchasing items such as over the Internet(e.g., the World Wide Web). Thus, the facility 605 may be equipped toconveniently take orders over the Internet.

The inventive hybrid retail/warehouse system 600 also includes acontainer 610 associated with the retail/warehouse facility 605 forstoring at least one item, an electronic module 620 (e.g., a radiofrequency identification (RFID) module) associated with the container610, and a controller 630 which wirelessly communicates with the module620, for directing a transfer an item to and from the container 610.

Specifically, the container 610, electronic module 620 and controller630 may have features comparable to those discussed above with respectto the container 110, electronic module 120 and controller 130 in thewarehousing system 100 above. In addition, the operation of theinventive hybrid retail/warehouse system 600 is comparable to theoperation of the warehousing system 100 explained above with respect toFIGS. 5A-5B.

In short, the inventive system 600 provides a highly efficient, lowcapital cost solution that also can be easily scaled with throughputgrowth at low costs. The cost-effective scalability feature makes theinventive system 600 an attractive component in the Corporate Networkproduct. Further, the inventive system 600 is ideally suited to serveuncertain inventory requirements. The system 600 can serve the fullrange and be quickly retrofitted at a low cost to increase productivityor be used as a simple pick-to-light in aisle system.

In other words, the inventive system 600 provides an inventive “neweconomy” fulfillment channel, that can save as much as 50% in regionalfulfillment costs. The inventive channel may be based, for example, onoptimized un-attended night-time delivery to a network of proprietary,secure drop boxes.

The inventive system 600 may be used, for example, forbusiness-to-business (B2B) corporate fulfillment (e.g., critical parts,industry specific networks, wholesale fulfillment, and private corporatenetworks). However, the inventors believe retail fulfillment also offersa significant opportunity and can also benefit from the inventive system600 and its related technology.

Unlike conventional systems, the inventive hybrid retail/warehousesystem 600 provides optimized high throughput for each picking. Theinventive system 600 relies in part on the electronic module 620associated with the container 610. However, unlike many radio frequency(RF) tag devices in conventional systems (and comparable to the featuresdiscussed above with respect to module 120) the module 620 may include:two LEDs, an 8 Digit LCD, three operating switches (e.g.,activating/deactivating buttons), a two way 300 Khz 1200 baud RF link,programmable functionality, and a prepro-grammed unique identification(e.g., ID number). Further, each module 620 may be used to displayretail price and unit price, in addition to displaying all otherwarehouse functions on demand for in-store pickers, includingpick-to-light LEDs.

Referring again to FIG. 6, the controller 630 wirelessly communicateswith the RFID module 620, in order to identify and locate items. Itshould be noted that FIG. 6 is merely illustrative and that thecontroller 630 may be located within or outside the facility 605.Likewise, the RFID module may be located either inside or outside thefacility 605 and still be controlled by the controller 630.

The inventive system 600 provides a low-cost, small-footprintpick-to-light fulfillment system that can use the controller 630 to“find” an item in a warehouse (e.g., a hybrid retail/warehouse facility605). Using a unique Radio Frequency Identification (RFID) module, thecontroller 630 allows random, dynamic placement of inventory for eitherpick or put-away. The controller 630 can “find” and recognize thelocation of any randomly placed inventory with periodic scans of thewarehouse.

In addition, inventive system 600 is very flexible. Its installation canbe configured to as low as 2,000 containers or modules, yet there is nopractical limit on the size of facility or number of SKUs.

The inventive system 600 further provides a wireless, real-timefulfillment system using pick-to-light (PTL) and RFID technology whichmay be coupled with a proprietary inventory location and positioningsoftware which may be executed, for example, by the controller 630. Thecontroller 630 allows for the identification and placement of inventoryanywhere in the warehouse without the rigid structures of predeterminedinventory locations or addresses.

Further, the proprietary wireless display module 620 is designed so asto allow the central controller 630 to selectively “talk” to the module620 when it is located anywhere in or around the warehouse facility 605.In addition, the modules 620 can be attached to any inventory unit(e.g., each/container/tote/pallet, etc.). Once an SKU is identified tothe module 620, an item may be placed anywhere in or around the facility605 and the controller 630 will “locate” it.

Further, the inventive system 600 is configurable to any warehouseoperation. Its basic functionality may include, for example, receiving,dynamic or traditional addressed put-away, dynamic picking, packing,shipping, cross docking, productivity measurement, labor management,dynamic slotting, re-warehousing (storage consolidation), RFcommunications for all functions, automatic replenishment, expirationdating, batch/lot control, report generation, order management, wavemanagement, weight check, cycle counting

COMPARATIVE EXAMPLES

FIG. 7A illustrates a conventional warehouse system, and FIG. 7Billustrates a comparably-sized warehouse utilizing the inventive hybridretail/warehouse system 600.

Specifically, FIG. 7A illustrates a conventional warehouse which mayinclude, for example, a typical 250,000 sq. ft. distribution center(500′×500′) in which all SKUs have location addresses assigned to them,either random or fixed. All locations within the facility are active,picking can occur throughout the facility. It is assumed that 20 pickersare required to pick 200 orders for this hypothetical operation.

Traditional pick-paths can span the entire warehouse to find the “B” and“C” items in a pick list.

It may be assumed, for example, that within such a conventionaldistribution operation, 75% of a picker's time will be spent traveling,and an average multi-pick order will require the picker to travel 60% ofthe total aisle distance within the picking area. In this case there are7 aisles, 300 feet each; at 60% average order batch travel will be 1,260feet and 200 batches will require travel of 252,000 feet per day (7aisles×300 feet×60%×200 order batches). Assuming 20 pickers are requiredto fulfill, the average picker travel will be 12,600 feet per day.Therefore the standard output per picker is 12,600 feet per day.

FIG. 7B, on the other hand, illustrates a warehouse utilizing theinventive system 600 and which includes a Dynamic Pick Area A B C D F G.The inventive system 600 allows a much smaller pick area. In addition, alimited number of people locate the “B” and “C” containers and positionthem within the picking area.

Specifically, FIG. 7B illustrates a distribution center with 25,000 sq.ft. picking area, with 825 feet of aisles (11 aisles×75 feet) and225,000 sq. ft. for back stock. This methodology may require two (2)full-time replenishers. However, since the picking area isgeographically smaller and travel distances are shorter, there will befewer pickers required. Using the math from the first illustration: 200order batches×(825×60%)/12,600 feet/day/picker (performance standard)=8pickers required. 8 pickers+2 replenishers=10 total headcount for a 10headcount reduction. Paybacks of less than one year can be attainedusing the presently disclosed inventive system 600.

Referring again to the drawings, FIG. 7C illustrates a conventionalwarehouse system, and FIG. 7D illustrates a comparably-sized warehouseutilizing the inventive hybrid retail/warehouse system 600.

FIG. 7C illustrates second example of a conventional warehouse system AB C D E F G Y. As shown here, conventional pick-paths can span theentire warehouse to find the “B” and “C” items in a pick list.

Specifically, FIG. 7C illustrates a typical 250,000 sq. ft. distributioncenter (500′×5800′) in which all SKUs have location addresses assignedto them, either random or fixed. All locations within the facility areactive, picking can occur throughout the facility.

It may be assumed, for example, that 20 pickers are required to pick 200orders for this hypothetical operation. It may also be assumed that,within distribution operations, 75% of a picker's time will be spenttraveling, and an average multi-pick order will require the picker totravel 60% of the total aisle distance within the picking area.

In this case there are 7 aisles, 300 feet each; at 60% average orderbatch travel will be 1,260 feet and 200 batches will require travel of252,000 feet per day (7 aisles×300 feet×60%×200 order batches). Assuming20 pickers are required to fulfill, the average picker travel will be12,600 feet per day. Therefore the standard output per picker is 12,600feet per day.

FIG. 7D, on the other hand, illustrates a facility using the inventivesystem 100 as applied to a picking operation. As shown in FIG. 7D, theinventive system 600 allows a much smaller pick area. A limited numberof people locate the “B” and “C” containers and position them within thepicking area (e.g., dynamic pick area A B C D E F.

Specifically, FIG. 7D illustrates the a distribution center with 25,000sq. ft. picking area, with 825 feet of aisles (11 aisles×75 feet) and225,000 sq. ft. for back stock. This methodology will require two (2)full-time replenishers, however since the picking area is geographicallysmaller and travel distances are shorter, there will be fewer pickersrequired. Using the math from the first illustration: 200 orderbatches×(825×60%)/12,600 feet/day/picker (performance standard)=8pickers required. 8 pickers+2 replenishers=10 total headcount for a 10headcount reduction. Paybacks of less than one year can be attainedusing the inventive system 600.

This example, assumes, for instance, that each headcount=$15.00 US/hrincluding fringes, and that each headcount=2080 hours/year (noovertime). It also assumes a 250,000 sq. ft. warehouse cost at $4.00 USper sq. ft. $1,000,000 US inventory.

Therefore, the cost of the inventive system 600 may include installationw/20,000 containers $250,000, employee retraining 8 hrs H 20 HC 2,400,maintenance agreement (15%) 37,500, and contingency (10%) 25,000. Thus,the total cost is about $314,900.

In other words, the inventive system 600 results in savings over theconventional system. For instance, assuming a 10 headcount reduction (10H $15 H 2080) $312,000, space utilization improvement 15% 50,000, andinventory utilization improvement 5% 50,000, the total savings is about$362,000.

Other Features

An important feature of the inventive system 600 is that location ofitems does not need to be assigned. All movement whether put-away,re-stocking, receiving or shipping can be random and dynamic. Thecontroller 630 will locate the SKU, container, or pallet and update thesystem 600. All items within or around the facility 605 may beidentified with modules 620 which are continuously interrogated by thecontroller 630 for quantity and physical location of the items.

This unique attribute is invaluable in fast paced, dynamic warehouseenvironments such as fashion, seasonal businesses, and service parts.The ability to dynamically slot picking areas allows the warehouse tokeep a small picking footprint. The ability to dynamically consolidateput-away areas keeps those storage areas densified and opens empty slotsfor inbounds.

There are other important features of the inventive system 600 whichmake it more efficient than conventional systems. For example, thereceipt process ties a single unit of product (each, container, pallet,etc) to a single module 620 which may be automatically tracked by thecontroller 630. Further, Received product is simply put into the nextavailable picking or storage slot anywhere in the warehouse (e.g.,dynamic put-away). The controller 630 takes care of the tracking. Thisuser-friendly approach allows operators more freedom to manage the flowof inbound inventory.

In addition, the system 600 provides for dynamic picking. For instance,occasionally, a “B” item becomes an “A for a day” and these items can bemoved forward in real-time by the pickers, while slower moving items “Bfor a day” can be moved back using the same methodology. The system 600also provides for cross-docking. For instance, during the receivingprocess, the controller 630 will automatically identify product to becross docked and will notify receiving personnel through the display onthe module 620. The product is then directed to the appropriate packingor shipping area. The system 600 also helps to facilitate productivitymeasurement. That is, the controller 630 may contain productivityreporting capabilities and interface with all conventional warehouseproductivity software.

The system 600 also provides for dynamic slotting. For example, as thevelocity of products change, the controller 630 may direct the movementof product to specific aisles or slots. Replenishers may be directed tomove fast movers to the front of the picking area, slower movers back,and “C” items will be removed to storage if there is no future pickingrequirement. It should be noted that there is no requirement to returnthe “C” item to a fixed address, because it can be replaced anywhere instorage and the controller 630 will find it. The controller 630 updatesthe new location of the product automatically, and directs pickers orreplenishers to the “new” location.

Further, the system 600 provides for pick path optimization.Specifically, pickers and replenishers may be directed through the mostefficient pick paths to optimize productivity (e.g., a picking area maybe minimized and a walking distance between a shelving (e.g., storage)area and a picking area may be minimized).

The system 600 also facilitates re-warehousing (storage consolidation).In other words, partially depleted containers may be moved tohalf-container locations to density the storage area. Again thecontroller 630 may automatically update the new location of the product.

Further, wireless (e.g., radio frequency) communications may be used forall functions, thereby providing for automatic replenishment. In otherwords, since the controller dynamically tracks the location and quantityof all products in the warehouse, replenishment signals may be triggeredto keep the right product in the pick area, just in time.

The system 600 can be incorporated at receipt to so as to facilitateexpiry dating. In other words, the controller 630 can be configured to“find” the oldest product to reduce expiry dating write-downs. Thesystem 600 may also aide in batch/lot control. The system 600 iscompletely variable and operator controllable to assure that the rightmix or match of products is sent to the right customer. Last in firstout (LIFO), first in first out (FIFO), least costly first, most costlyfirst, expired product flash, and more are available in the controller630.

The system 600 also facilitates cycle counting. In other words, thesystem 600 is configurable to meet the audit requirements of anycompany. Pickers may transmit (e.g., directly transmit) inventorydiscrepancies or replenishers to the controller 630 to trigger fullscale cycle counts by SKU, container, expiration date, batch, etc.

In addition, the inventive system 600 is consistent and compatible withmany current warehouse operations and systems. This is a significantbenefit to organizations that have invested heavily in a traditionalwarehouse management system (WMS) and desire to add the module 620 andcontroller 630 functionality to their existing systems.

Economic Analysis

The inventors carried out preliminary economic analysis and marketinginterviews and concluded that a retail store which utilizes theinventive hybrid retail/warehouse system 600 will overcome the majordisadvantages of value chain issues and in-store picking of items. Thestore would effectively be able to sell “two touch” items at a retaillevel.

Additionally, such retail stores with the inventive system 600 will havelow costs associated with item shelf maintenance, and provide theconsumer with a neat orderly appearance. Such stores would also havevery low planogram requirements, product maintenance inventorymanagement costs, and the ability to modify and re-set store layout in amatter of only a few hours. Such a store would also have many inventorymaintenance advantages, and the ability to optimize pricing toconsumers.

In addition, such stores using the inventive system 600 may overcome oneof the major consumer objections to bulk discount stores, namely “thatit costs too much to shop because your forced to buy in largequantities”. In other words, a store using the inventive system 600 willpermit the store to sell individual items at discount bulk prices, forboth in-store and out-of-store (e.g., internet/catalog) sales.

Advantages

The advantages of the inventive system 600 over a conventionalshelf-based system with a traditional warehouse management system (WMS)are numerous. For example, the system 600 provides for captivecustomers, and strong customer conversion. Most in-store customers wouldmake use of Internet and visa-versa. The system 600 also makes itpossible to sell individual items in-store at prices competitive todiscount bulk in competition. This is considered a consumer barrier tocurrent bulk stores. In addition, the system 600 provides strongeconomic and value chain justification.

Further, the containers provide enormous savings in software and systemscomplexity, and product handling and space management efficiencies.Totes have a long history of success in Europe, where many manufacturesare required to deliver all back-door products packed in containers. Thecontainers can also provide a neat orderly looking store.

In addition, the system 600 provides electronic pricing and priceoptimization which is essentially free, and has stand-alone economicadvantages. Further, the electronic management of item location orplanogram has a low cost and is easy to implement. Moreover, storere-set can be carried out at much lower cost. In addition, the softwaresystems and product inventory management software in the system 600 arenot complex compared to conventional in-store systems.

In addition, the modules 620 are relatively inexpensive (e.g., less than$5.00 per module). Further, the software used to manage item picks andinventory that replaces current warehouse management system (WMS)software is simple. This is at least in part because the system 600 maybe based on containers not SKUs. Moreover, physical location of theitems can be managed and detected by the software in the warehouse, anditems can be re-set based on whatever optimization might be required.

By flashing light-emitting devices (e.g., light-emitting diodes (LEDs))on items to be picked, the pick rates may be doubled, put costs reduced,inventory management simplified, particularly with same SKUs that havedifferent cost basis or expiration dates. Furthermore, physicalinventory is simple, warehouse re-sets can be carried in matter of onlyfew hours, and item location in warehouse can be optimized on almost adaily basis.

Conventional paper based operations can retain their existing warehousestorage philosophy and simply implement the inventive system 600 in apicking area. This is an excellent use of capital and the inventivesystem's capabilities. Improving picking productivity by 20-40% willjustify the capital expenditure for the system 600, due to the system'slow investment. For instance, if a company employs 20 or more warehousepersonnel, an improvement in performance of only 4-6 headcount willjustify the cost of the system 600. In addition, the system 600 isexpandable and scalable, allowing warehouse operations to grow withtheir expanding businesses and markets.

Further, documentation and support of the controller 630 may includeoperations manuals, training documentation and support, installationmanual, installation technical support, technical help desk, and fullrelease and documentation of the controller 630 source code. Maintenanceagreements in one (1) to five (5) year increments may also be availableat 15% of installation annually, which will include all upgrades andmodifications.

In short, the inventive system 600 provides fast paced quickly changingdistribution operations the accuracy and efficiency of a conventionalpick-to-light system without the high cost and static positions ofhard-wired displays.

Further, the open code structure allows the inventive system 600 toeasily interface with existing legacy business systems, enterpriseresource planning systems (ERP) or existing inventory/warehousemanagement systems.

Specifically, the modules 620 may include a proprietary design. Briefly,though, each module 120 may contain a custom communication chip. Atypical warehouse utilizing the inventive system 600 may include, forexample, approximately ten (10) base stations for communication, acentral controller, and approximately 20,000 containers for a total costof under $250,000 installed. This is relatively inexpensive, compared toconventional WMS and PTL which cost approximately $100 to $250 US perlocation.

Other benefits of the inventive system 600 may include: installationcosts 50-75% below traditional WMS-based PTL systems, improved pickeraccuracy to 99%+, improved picker productivity of 20-40% compared to nonPTL installations, Space reductions up to 25% due to more effectivespace utilization, dynamic ABC, dynamic storage consolidations,Inventory reductions due to improved accuracy, consolidation, real-time,and cross-dock capabilities, Operator accountability, Real-timetransaction capture, Paperless warehouse environment, 24×7 customerservice/help desk, and Installation support.

Referring to FIG. 8, another aspect of the present invention includes aninventive warehousing method 800. As shown in FIG. 8, the inventivemethod includes storing (810) at least one item in a first container,and remotely directing (820) a transfer of the item(s) to and from thefirst container, using a Radio Frequency Identification Device which isassociated with the first container.

In addition, FIG. 9 is a flowchart an inventive hybrid retail/warehousemethod 900. As shown in FIG. 9, the inventive method 900 includesstoring (910) at least one item in a first container which is associatedwith a retail/warehouse facility, and remotely directing (920) atransfer of the item(s) to and from the first container, using a RadioFrequency Identification Device which is associated with the firstcontainer.

Referring again to the drawings, FIG. 10, illustrates a typical hardwareconfiguration which may be used for implementing the inventive system100, 600 and method 800, 900. The configuration has preferably at leastone processor or central processing unit (CPU) 1011. The CPUs 1011 areinterconnected via a system bus 1012 to a random access memory (RAM)1014, read-only memory (ROM) 1016, input/output (I/O) adapter 1018 (forconnecting peripheral devices such as disk units 1021 and tape drives1040 to the bus 1012), user interface adapter 1022 (for connecting akeyboard 1024, mouse 1026, speaker 1028, microphone 1032, and/or otheruser interface device to the bus 1012), a communication adapter 1034 forconnecting an information handling system to a data processing network,the Internet, and Intranet, a personal area network (PAN), etc., and adisplay adapter 1036 for connecting the bus 1012 to a display device1038 and/or printer 1039. Further, an automated reader/scanner 1041 maybe included. Such readers/scanners are commercially available from manysources.

In addition to the system described above, a different aspect of theinvention includes a computer-implemented method for performing theabove method. As an example, this method may be implemented in theparticular environment discussed above.

Such a method may be implemented, for example, by operating a computer,as embodied by a digital data processing apparatus, to execute asequence of machine-readable instructions. These instructions may residein various types of signal-bearing media.

Thus, this aspect of the present invention is directed to a programmedproduct, including signal-bearing media tangibly embodying a program ofmachine-readable instructions executable by a digital data processor toperform the above method.

Such a method may be implemented, for example, by operating the CPU 1011to execute a sequence of machine-readable instructions. Theseinstructions may reside in various types of signal bearing media.

Thus, this aspect of the present invention is directed to a programmedproduct, comprising signal-bearing media tangibly embodying a program ofmachine-readable instructions executable by a digital data processorincorporating the CPU 1011 and hardware above, to perform the method ofthe invention.

This signal-bearing media may include, for example, a RAM containedwithin the CPU 1011, as represented by the fast-access storage forexample. Alternatively, the instructions may be contained in anothersignal-bearing media, such as a magnetic data storage diskette 1100(FIG. 11), directly or indirectly accessible by the CPU 1011.

Whether contained in the computer server/CPU 1011, or elsewhere, theinstructions may be stored on a variety of machine-readable data storagemedia, such as DASD storage (e.g, a conventional “hard drive” or a RAIDarray), magnetic tape, electronic read-only memory (e.g., ROM, EPROM, orEEPROM), an optical storage device (e.g., CD-ROM, WORM, DVD, digitaloptical tape, etc.), paper “punch” cards, or other suitablesignal-bearing media including transmission media such as digital andanalog and communication links and wireless. In an illustrativeembodiment of the invention, the machine-readable instructions maycomprise software object code, complied from a language such as “C,”etc.

Further, it should be noted that the electronic tag may be considered tobe associated not only with the container which contains items, but alsowith the item or items stored by (e.g., housed in) the container. Forexample, where the container includes a single item, the electronic tag(e.g., electronic module) which is affixed to (e.g., integrally formedwith) the container may likewise be considered to be associated with theitem stored in (e.g., housed by) the container.

Thus, information (e.g., an expiry date) associated with the item oritems may be stored by the memory device included in the electronicmodule affixed to the container which houses the item or items.

Further, FIG. 12 illustrates the details of an electronic module whichmay be associated with a container or multiple items, or a single item(e.g., where a single item is included in the container) in theinventive system 100. As illustrated in FIG. 12, the electronic tag 1210associated with the item may be affixed to a container or containers. Asnoted above, the container may include, for example, a tote, package,packet, wrapper, envelope, pouch, crate, pallet, bin, cylinder, box,carton, bag, can, etc. and may contain (e.g., store, house, etc.) asingle item.

Further, the small electronic tag 1210 (e.g., electronic module) may beintegrally formed with (e.g., embedded in a wall of) the container ormay be affixed (e.g., adhered to) the container, for example, bylocating the module, in a small translucent pocket on the container. Thetag may include a signaling device (e.g., a plurality of signalingdevices) such as a colored (e.g., red or green) light emitting device1220 (e.g., a light emitting diode (LED) or an audible signaling device.The electronic tag 1210 may also include a liquid crystal display 1230(LCD) for numeric or alphanumeric display, and a switch (e.g., pluralityof switches or buttons) 340 for controlling an operation of theelectronic tag 1210.

FIG. 12 provides a more detailed description of the electronic tag 1210.As shown in FIG. 12, the electronic tag 1210 additionally may include aninexpensive processor 1225 (e.g., a low powered four bitmicroprocessor), a memory device 1235 (e.g., a random access memory(RAM)) or other nonvolatile memory device for storing a uniqueidentification number. The identification number may be permanent, sothat it can be changed only with a special program and transmitter.

The electronic tag 1210 may also contain a transceiver 1250 (e.g., atransmitter/receiver such as a two-way communication chip) for allowingthe electronic tag 1210 to communicate with a base station (e.g.,controller). The two-way communications chip may be, for example, alowcost CMOS analog digital chip. The chip may be connected to one ormore orthogonal ferrite antennas 1260 that are able to transmit andreceive signals using low frequencies (e.g., radio frequencies such asabout 128 kHz) to a loop antenna which may be wirelessly connected to abase station (e.g., controller). For example, antenna 1260 may be smallor large relative to the size of the container. Specifically, theantenna 1260 may be large and may be formed on at least one side of thecontainer.

Further, the electronic module 1210 may be integrally formed with thecontainer. That is, the entire body of the container may be availablefor including features of the electronic module 1210. For example, ifthe container is a plastic package having 6 sides (e.g., atetrahedron-shaped package) the antenna may be integrally formed (e.g.,embedded in) on one or more of the six sides of the package.

For example, the container may include a body which contains the item,and an electronic module integrally formed with (e.g., embedded in) thebody. In this case, the body may include an antenna coupled to theelectronic module for facilitating wireless communication with theelectronic module. For example, the body may include a plurality ofsides, the antenna being integrally formed with at least one of theplurality of sides. Specifically, the antenna may be integrally formedwith all of the plurality of sides.

Further, the loop antenna (e.g., antennas) may be located in thewarehouse in order to facilitate a two-way communication between theelectronic tag(s) 1210 and the base station (e.g., controller).Specifically, the electronic tag 1210 may wirelessly communicate withthe base station via a bi-directional wireless link. The wireless linkmay include, for example, a low frequency conductive loop requiringminimal power and allowing communication within a small area.

Further, the LCD 1230 may be programmed to display both numeric as wellas alphanumeric information transmitted to the electronic tag (e.g.,electronic module) via the base station. The circuitry may be solarpowered or powered, for example, by a battery 1270 or other powersource. Battery life using conventional alkaline batteries is likely toexceed five years, and with AAA batteries the life may be longer.

In the present invention, the container which contains an item (e.g.,items) may be transferred to an area where the item can be sorted andstored (e.g., on shelves) in the warehouse. The location of the items(e.g., items in containers) can be random or predetermined. For example,the electronic tag 1210 may be used to help direct the placement ofitems at predetermined locations (e.g., on shelves) in the warehouse.For example, an item's proper location in the warehouse may be displayedon the LCD 1230 so that it may be easily viewed, for example, byhandlers (e.g., picker/packers) at a distribution center. For instance,the items may be sorted and shelved in the warehouse, for example, by anexpiry date.

For example, the items can be placed on shelves from left to right,front to back, upper to lower or lower to upper or in any other order,according to such factors as the expiry date of the item.

In addition, using the loop antenna, the base station (e.g., controller)may poll all of the electronic tags 1210 in the inventive system insearch of a particular electronic tag 1210 and communicate only withthat particular tag. For instance, the base station may poll each of theelectronic tags 1210 located near (e.g., within) a loop antenna at aparticular location (e.g., on a particular shelf) in the warehouse.Thus, the base station is capable of placing specific information on thedisplay 1230, activating/deactivating the signaling device (e.g.,flashing the light emitting diodes 1220), selectively activating eachelectronic tag 1210 associated with an item (e.g., an electronic tag1210 affixed to a container which contains item).

For example, the item (e.g., containers of items) may be loaded ontoshelves at the warehouse (e.g., distribution center). The loop antennamay, for example, be wired around the back and/or top of the shelfholding the items (e.g., containers). The loop antenna is wirelesslyconnected to the base station (e.g., controller) which can transmit andreceive to all electronic tags 1210 located in the loop (e.g., locatedon a particular shelf).

Each electronic tag 1210 may have a unique identification number. Thebase station 120 may poll all of the electronic tags 1210 in the loop(e.g., in the transport vehicle) for a specific identification number,and then communicate only to that specific electronic tag. For example,the base station may place specific information on the display of theelectronic tag, activate or deactivate the signaling device (e.g., LED)while selectively polling each electronic tag.

FIG. 13 illustrate another aspect of the present invention which issimilar to the aspects described above and, thus, the above descriptionsof the various aspects of the present invention are incorporated byreference herein.

Specifically, as illustrated in FIG. 13, the present invention includesan item 1305 to be warehoused. The item 1305 includes an electronicmodule 1310 (e.g., RFID module described above) associated with the itemfor wirelessly communicating with a controller which controls awarehousing of the item 1305.

The present invention further includes a system 1300 for warehousing theitem 1305. The system 1300 includes the electronic module 1310associated with the item 1305, and a controller 1320 which wirelesslycommunicates with the electronic module 1310, for controlling awarehousing of the item 1305.

For example, the controller 1320 may control a warehousing of the item1305 by controlling at least one of a location of the item and amovement of the item.

Further, the electronic module may be one of affixed to (e.g., byadhesive, staple, fastener, clip, screw, rivet, etc.) the item andintegrally formed with the item. Thus, for example, where the item is aplastic device, the electronic module 1310 may be integrally formed with(e.g., embedded in) the plastic item. Further, the electronic module1310 may be formed in (e.g., integrally formed in) an adhesive labelwhich can be adhered to the item 1305.

With its unique and novel features, the present invention optimizes eachemployee's time and leads to highly efficient put away of products andhighly efficient picking of products. The invention, therefore, offersaffordable, state-of-the-art technology for managing and improvingretail and warehouse operations. The inventive system and method mayalso be conveniently offered as an independent or integrated solution tosupply chain needs.

While the invention has been described in terms of several preferredembodiments, those skilled in the art will recognize that the inventioncan be practiced with modification within the spirit and scope of theappended claims. For example, while a scenario has been discussed withvarious colored lights, obviously different colored lights could beused, as well as different formats for the lights (e.g., pulsing,flashing, etc.).

1-6. (canceled)
 7. A hybrid retail/warehouse system comprising: aretail/warehouse facility comprising a shelving area and a picking areaadjacent to said shelving area, and having a layout so as to minimize apicking area and a walking distance between a picking area and ashelving area; a container associated with said retail/warehousefacility for storing at least one item, an electronic module associatedwith said container; and a controller which wirelessly communicates withsaid module, for directing a transfer of said at least one item to andfrom said container.
 8. The hybrid retail/warehouse system according toclaim 7, wherein said item is personally selected by in-store customersand remotely selected by out-of-store customers.
 9. The warehousingsystem according to claim 7, wherein said electronic module is affixedto said container. 10-11. (canceled)
 12. A hybrid retail/warehousemethod comprising: storing at least one item in a container which isassociated with a retail/warehouse facility, said facility comprising ashelving area and a picking area adjacent to said shelving area, andhaving a layout so as to minimize a picking area and a walking distancebetween a picking area and a shelving area; and remotely directing atransfer of said at least one item to and from said container, using anelectronic module which is associated with said container.
 13. Thehybrid retail/warehouse method according to claim 12, wherein said itemis at least one of personally selected by in-store customers andremotely selected by out-of-store customers.
 14. The hybridretail/warehouse method according to claim 12, wherein said electronicmodule is affixed to said container.
 15. The hybrid retail/warehousemethod according to claim 12 wherein said container comprises a plastictote.
 16. A signal-bearing media tangibly embodying a program ofmachine-readable instructions executable by a digital data processor toperform a warehousing method, said method comprising: storing at leastone item in a first container; and remotely directing a transfer of saidat least one item to and from said first container, using an electronicmodule which is associated with said first container.
 17. Asignal-bearing media tangibly embodying a program of machine-readableinstructions executable by a digital data processor to perform a hybridretail/warehouse method, said method comprising: storing at least oneitem in a container which is associated with a retail/warehousefacility, said facility comprising a shelving area and a picking areaadjacent to said shelving area, and having a layout so as to minimize apicking area and a walking distance between a picking area and ashelving area; and remotely directing a transfer of said at least oneitem to and from said container, using an electronic module which isassociated with said container. 18-21. (canceled)
 22. A pallet forstoring an item of merchandise, said pallet comprising: a body whichcontains said item of merchandise; and an electronic identificationmodule attached to said body.
 23. A package for storing an item ofmerchandise, said package comprising: a body which contains said item ofmerchandise; and an electronic identification module attached to saidbody. 24-25. (canceled)
 26. A container for containing an item,comprising: a body which contains said item; and an electronic moduleintegrally formed with said body.
 27. The container according to claim26, wherein said body comprises an antenna coupled to said electronicmodule for facilitating wireless communication with said electronicmodule.
 28. The container according to claim 24, wherein said bodycomprises a plurality of sides, said antenna being integrally formedwith at least one of said plurality of sides.
 29. The containeraccording to claim 24, wherein said antenna is integrally formed withsaid plurality of sides. 30-32. (canceled)
 33. A system for warehousingan item, comprising: an electronic module associated with said item; anda controller which wirelessly communicates with said electronic module,for controlling a warehousing of said item.
 34. The system of claim 33,wherein said controller controls a warehousing of said item bycontrolling at least one of a location of said item and a movement ofsaid item.
 35. An item to be warehoused, comprising: an electronicmodule associated with said item for wirelessly communicating with acontroller which controls a warehousing of said item.
 36. The item ofclaim 35, wherein said electronic module is one of affixed to said itemand integrally formed with said item.